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2006-11-08 03:04:31 · 4 answers · asked by TIRTHA M 1 in Business & Finance Corporations

4 answers

When a company want more cash inflow they sell a part of their company as stocks/shares.so when one buys a share to that company we partly own how much we invested in that company and when and if that company makes profit/loss we get our part of share based on if they made profit/loss.
I for one feel its all abt knowing when to buy and when to sell.of course there is a part where you have to find out which company and its risks.
but once you know that its a nice way to make money.

2006-11-08 03:33:14 · answer #1 · answered by fayblk 2 · 0 0

Stock Market is a place where the stocks of companies are brought and sold. The exchange acts as the middle man who oversees the sale and purchase. They make sure that the transactions undergoes smoothely and all the activities related to stock transactions are taken careof. They have something called the clearing house which makes the actual exchange of money and the stocks. They allow companies to list their stocks in the exchange for a fee and on meeting some standards of their size depending on investmetnt size. Only listed stocks can be traded in a stock exchange. For listing the companies should follwo the directives of the Stock Exchange regarding transparency, accountability, reliability etc; of their operations to the general public. Only Stock Brockers can trade in Stock Exchanges. These are registered traders with the stock exchange who buys a seat in the exchange for a fees stipulated by the exchange. The brokers and their affiliates can trade in the stock exchange, those who are designated by the brokerage houses to trade. Stock Exchanges has the power to list or delist any company, to give seat or reject any stock brocker etc;.

2006-11-08 04:00:59 · answer #2 · answered by Mathew C 5 · 0 0

Stock market is a place where shares of public companies are traded.Visit nseindia.com and go through the basic module of cash market. This will give you basic idea about stock market.

2006-11-08 03:12:21 · answer #3 · answered by bhupesh 2 · 0 0

http://money.howstuffworks.com/stock.htm

2006-11-08 03:39:40 · answer #4 · answered by sushobhan 6 · 0 0

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